NACPS Tombstone - Website

North American Commercial Parts and Service, Inc.

Business Description

NACPS is a leading food equipment parts distribution and field service company. The Company provides parts, repair and planned preventive maintenance services for thousands of restaurants, hotels, hospitals, school districts, and universities. NACPS maintains relationships with many of the leading food service equipment manufacturers and operates factory authorized parts and service centers for select OEMs.

Background

Wes Tyler and Jim O’Brien, the founders and owners of NACPS, had grown the Company from its founding to one of the largest parts and service companies in the industry. They recognized that in order to continue that growth they would need to make substantial investments in technology and infrastructure as well as continue to make strategic acquisitions. Wes and Jim are both industry veterans who sought to sell their business to a premier industry player that would invest in the growth of the business, treat their employees well, be a fun place to work and share the same service-oriented culture.

Solution

CMM ran a targeted auction process and approached a number of strategic buyers. Before approaching the market, CMM worked closely with the management team to prepare the company for an intensive marketing and due diligence process. CMM helped prepare a recast of the financial statements, a customer, tax and asset analysis before running a managed auction. Wes Tyler commented, “Having advisors who we trusted to represent our best interests was essential to us.”

Wes and Jim chose Parts Town, one of the industry’s most respected industry companies and a portfolio company of Summit Partners, a Boston private equity firm. Parts Town has grown at least 25% every year for the past 11 years. Wes and Jim invested a portion of the sale proceeds back into Parts Town stock. Both owners continue as the leaders of NACPS and part of the group leadership team.

This is CMM’s second time working with the management team at NACPS, having advised the principals in the sale of their first business to Ecolab.Anesthesia Data Systems, Inc. (ADS) was a health care information technology company that provided an innovative system for capturing, processing and analyzing utilization.